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Government claims new email evidence proves NO special car dealer treatment

Alexandra KirkUpdated
Mon 22 Jun 2009, 9:22 AM AEST

The Government its stepping up its fight against Opposition claims that a car dealer friend of Kevin Rudd's was given special treatment when he sought assistance from a government credit fund. The Government says it has evidence other car dealers received similar treatment and is demanding Malcolm Turnbull produce an email allegedly linking Mr Rudd to attempts to assist his friend - or resign.

Transcript

ASHLEY HALL: There's likely to be a fiery showdown when Federal Parliament resumes this morning, as the Government tries to shake off allegations that those at the top tried to do favours for a car dealer friend.

The Opposition Leader Malcolm Turnbull accuses the Prime Minister Kevin Rudd and the Treasurer Wayne Swan of misleading Parliament over the issue.

The Government is fighting back, calling on Mr Turnbull to resign if he can't provide the mystery email today which supposedly proves the Prime Minister's involvement.

We'll speak to the Prime Minister Kevin Rudd shortly.

But first to Alexandra Kirk reports from Canberra.

ALEXANDRA KIRK: Faced with allegations Kevin Rudd and Wayne Swan used their powerful government positions to help Mr Rudd's friend, car dealer John Grant secure government assistance; the Prime Minister's decided to fight fire with fire.

EXCERPT FROM EMAIL (voiceover): Hi Godwin, the PM has asked if the car dealer financing vehicle is available to assist a Queensland dealership, John Grant Motors, who seems to be having trouble getting finance. If you can follow on this asap that would be very useful.

ALEXANDRA KIRK: Mr Grech recalls a short email simply alerting him to Mr Grant's case but adds that recollection could be wrong. A government search has failed to find any trace of the contentious email.

The Prime Minister's upped the ante, calling in the Federal Police and auditor general. He says the email on which Malcolm Turnbull's entire case rests is a fake and the clock is ticking. He has to prove his case today or quit.

Mr Turnbull insists he doesn't have a copy of the email, though he won't say if he's seen it.

Shadow treasurer Joe Hockey dismisses it as a diversion from the core issue.

Joe HOCKEY: Which is the behaviour of the Prime Minister, and more particularly the Treasurer. And what they said to Parliament and their attempts to cover up the relationship they have with John Grant.

ALEXANDRA KIRK: But the Motor Trades Association, which represents 1400 car dealers, has said that the treatment of Mr Grant, who is a member of theirs, the treatment that he got was no different from the treatment all their other members got. That would undermine your case, wouldn't it?

Joe HOCKEY: Well, all the members of the Motor Trades Association didn't have their cases faxed to the Treasurer's home. All of those people did not have Treasury officials citing the closeness between the individual car dealers and the Prime Minister as a justification for providing credit.

I think over the course of the next 24 hours, if not a little bit longer, it will become clear that the Treasurer and the Prime Minister have misled the Parliament, and misled the Australian people about their relationship with Mr Grant. And the fact that in particular the Treasurer conspired to try and obtain for Mr Grant an advantage that was not provided to other dealers.

ALEXANDRA KIRK: Some in Labor have already formed the view that Wayne Swan is yet to fully explain himself.

With expectations of a parliamentary showdown, senior Government sources now claim there are more emails showing two other car dealers, with no links to the Prime Minister or Treasurer, were treated similarly to Brisbane dealer John Grant.

AM's been told there are 21 emails - 12 were written by Mr Grech. All were copied to Treasury head Ken Henry, and at least 17 went to the Treasurer's office. The Government hasn't released them.